US
Election 2016
People
we've got to talk about this US Election. Because on Tuesday November
8 the most powerful democracy on Earth will elect the next "leader
of the free world".
The free
world is in danger right now. Not from Communists, North Korea and
Cuba couldn't bring down the free world if they tried. Not from
Al-Qaeda – they couldn't organised a chook raffle anymore. Not from
ISIS, they have some power on social media, but are losing the Syrian
civil war to the Assad regime and the Iraqi civil war to the Iraqi
government. No this time the threat to the "free world"
comes from within.
Democracy
in the Hard Times and the Good
Democracy
was defined by Abraham Lincoln as "government of the people, by
the people, for the people...". It's as good a working
definition as I have heard, although Churchill's "the worst form
of government except for all the others..." is also quite
enlightening.
But what is
the danger of which I speak? It's those pesky people. The ruled. The
ones who make up the nation.
How can the
people be the threat in a democracy ruled by the people? The answer
is of course that the people are unhappy.
Why are
people unhappy?
Such things
are hard to quantify but the answer is usually economic. Economic
hard times have always produced instability in Democracies.
Indeed The
fledgling democracy of Russia's February revolution was cut down by
the more permanent October revolution. Why? World War One. The people
were suffering and dying in what they perceived as a "rich man's
war."
The
aftermath of WW1 in Italy gave rise to the conditions which brought
Benito Mussolini to the fore.
The
horrendous war debt imposed on Germany by the treaty of Versailles
brought the German people of the inter war years to the point of
economic collapse. They of course turned to Adolf Hitler and the
National Socialist Party who modeled himself on Mussolini.
In the UK
Sir Oswald Mosley became the head of the British Union of Fascists
during the inter war years. The BUF boasted 50,000 members and noone
will be surprised to learn that the BUF was enthusiastically endorsed
by that great publication. The Daily Mail.
In
Australia Lt Colonel Eric Campbell formed the society for returned
servicemen called the New Guard. The New Guard were the expression
of an Australian form of fascism. They were vehemently anti communist
and while achieving little electoral success they did manage to bring
about the deposing of the socialist Premier of New South Wales Jack
Lang.
But the
Economy is Good Isn't It?
Today in
the USA all the economic indicators are pointing upwards.
GDP is
growing at 2.9% right now which is quite strong for a developed
economy in 2016. But dig a little deeper and you will find some
startling facts.
In 2014 the
Pew Research Center showed that real wages in the USA had not risen
noticably since 1964.
If that is
the case purchasing power has flat-lined, however innovation has
driven productivity far higher. So who is seeing the results of that
productivity?
Putting
the GINI Back in the Bottle
Inequality
of wealth is measured by something called the GINI coefficient. The
OECD has put much work into understanding wealth inequality
throughout it;s member states and has published findings here.
http://www.oecd.org/els/soc/49499779.pdf
Here is the
list of OECD countries by GINI Coefficient. They are ranked from most
equal to least equal.
Gini coefficient, after taxes and
transfers
Country
|
mid-70s
|
mid-80s
|
around 1990
|
mid-90s
|
around 2000
|
mid-2000s
|
Late 2000s
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.246
|
0.236
|
|
|
0.221
|
0.226
|
0.215
|
0.226
|
0.232
|
0.248
|
|
|
0.222
|
|
0.243
|
0.261
|
0.276
|
0.250
|
|
|
|
0.232
|
0.257
|
0.260
|
0.268
|
0.256
|
|
|
|
|
|
|
0.268
|
0.257
|
|
|
0.274
|
|
0.287
|
0.289
|
0.271
|
0.259
|
|
0.235
|
0.209
|
|
0.218
|
0.247
|
0.254
|
0.259
|
|
0.212
|
0.198
|
0.209
|
0.211
|
0.243
|
0.234
|
0.259
|
|
|
0.236
|
|
0.238
|
0.252
|
0.265
|
0.261
|
|
|
|
0.273
|
0.294
|
0.293
|
0.291
|
0.272
|
|
|
0.247
|
|
0.259
|
0.261
|
0.258
|
0.288
|
|
|
0.300
|
0.290
|
0.277
|
0.287
|
0.288
|
0.293
|
|
|
0.331
|
|
0.324
|
0.304
|
0.314
|
0.293
|
|
0.263
|
0.272
|
0.292
|
0.297
|
0.292
|
0.284
|
0.294
|
|
|
0.251
|
0.256
|
0.266
|
0.264
|
0.285
|
0.295
|
|
|
|
|
|
|
0.257
|
0.301
|
|
|
|
|
|
0.279
|
0.276
|
0.303
|
|
|
|
|
|
0.316
|
0.349
|
0.305
|
|
0.413
|
0.336
|
|
0.336
|
0.345
|
0.321
|
0.307
|
|
|
|
|
|
|
0.349
|
0.315
|
|
|
|
|
|
|
0.306
|
0.315
|
|
|
0.371
|
0.337
|
0.343
|
0.342
|
0.319
|
0.317
|
|
0.304
|
0.293
|
0.287
|
0.289
|
0.318
|
0.317
|
0.324
|
|
|
0.304
|
|
0.323
|
0.337
|
0.321
|
0.329
|
|
|
0.271
|
0.318
|
0.335
|
0.339
|
0.335
|
0.330
|
|
|
|
|
0.309
|
0.317
|
0.315
|
0.336
|
|
|
0.309
|
0.297
|
0.348
|
0.343
|
0.352
|
0.337
|
|
0.268
|
0.309
|
0.354
|
0.336
|
0.351
|
0.331
|
0.345
|
|
0.354
|
|
0.329
|
0.359
|
0.356
|
0.385
|
0.353
|
|
|
0.326
|
0.329
|
0.338
|
0.347
|
0.378
|
0.371
|
|
0.316
|
0.337
|
0.348
|
0.361
|
0.357
|
0.380
|
0.378
|
|
|
|
|
0.427
|
|
0.403
|
0.394
|
|
|
0.434
|
|
0.490
|
|
0.430
|
0.409
|
|
|
0.452
|
|
0.519
|
0.507
|
0.474
|
0.476
|
At the top
are the model societies of equality. These nations often are the most
highly developed. Nations like Slovenia, Denmark and Norway. At the
bottom are the nations who struggle to lift their poor out of
poverty. They are often afflicted by domestic strife. Mexico has the
drug cartels. Turkey has the Kurdish problem and ISIS on their
doorstep. Israel has thew Palestinian question. But nestled just
below Israel is...The USA. This is disturbing in the extreme. Some
form of inequality is important for a capitalist nation to function,
but grinding poverty and inequality at the levels recorded by the USA
is extremely dangerous.
For one it
acts as a massive handbrake on economic growth. A poor populace
cannot and will not consume the goods it produces.
Secondly a
poor populace will create political instability. These conditions
appear to be present in the United States.
WHAT MAKE
AMERICA GREAT AGAIN REALLY MEANS
Much has
been written on the character of the people who vote for Donald
Trump. They are mostly white. Mostly poorly educated. Mostly older.
The come from rural America. Surprising to some, their net wealth is higher than
expected. I don't find this surprising. These are people who have
worked through life, established good homes for themselves but seen
the possibilities for their children diminished. When a generation
feels it cant provide as good a life as they had for their own
children THEY HAVE EVERY RIGHT TO BE ANGRY.
They say
they want to take their country back. It's understandable. The
America they grew up in was a land of milk and honey. (If you were
white). Remember Superman's childhood home? Smallville. It was a
piece of rural America where the neighbors were friendly, everyone
had a good job where you could grow up to be Lex Luthor and be the
CEO of a Fortune 500 company.
The reality
was that many of these rural utopia's were hollowed out during the
1990's. Globalisation under the NAFTA treaty sent many of these rural
American jobs offshore. Often the whole town was centered around
supporting one industry. When that factory/mine/whatever closed this
utopia turned quickly into a distopia. Unemployment skyrocketed,
anyone who could get a job elsewhere (usually in a big city) left.
This made the support industries (like retail) less viable again.
Triggering a secondary hollowing out. The town was left highly
unemployed. Dirt poor. With only the retired who have any form of
wealth.
Substance
abuse surely follows until methamphetamine production becomes one of
the few viable industries in these towns. The crime and criminality
that surely followed turned Trump's apocalypic RNC convention speech in Detroit
into an every day reality.
The
military represents one way to better yourself and break the poverty
cycle, but it's not without risks. After 14 years of solid war the
rural poor of America have given many sons and daughters back to the
soil, killed in far off places like Afghanistan and Iraq. While their
family and nation continues to suffer at home.
President's named Clinton and Bush seemed to do everything in their
power to hasten the downfall of rural America. The free trade deals
they signed meant that those doing well did better, but those shut
out already did worse. Much worse. Is it any wonder that nominees
Clinton and Bush are unpopular with the rural poor? It's just self
interest.
Rustbelt
Economy
Industrial
areas of the USA fared no better than the rural areas. Great cities
like Cleveland and Detroit that once shook the world with their
economic power were devastated by industrial closure after industrial
closure. You can now buy a house in Detroit – the home of the
Automotive Industry in the USA for $500.
Workers who
had known prosperous lives were now laid off. Many of them had built
enough wealth that they were able to retire. Many more had not.
Whatever their financial situation, these people had seen their whole
way of life destroyed. First the oil shocks, then free trade had
decimated their lives.
These
workers remembered a time when their industrial output drove America
to lead the world. Now it was gone. When Trump promises to "Make
America Great Again" this is the future they see. Is it any
wonder people would vote for him?
Worldwide
Phenomenon
This
phenomenon is not just an American one. The english speaking world
has been controlled by economic liberals since the 1980's. Another
highly developed nation stands out on that list.
The UK is a
long way down the list as an extremely unequal nation. Conservative
Prime Minister Theresa May only got the job because her predecessor
David Cameron massively screwed up trade policy.
Cameron
went to the last election facing tremendous uprisings of
euro-skepticism from the hard right of his party. He was also afraid
of leaking hard right votes to Nigel Farage's euro-skeptic United
Kingdom Independence Party (UKIP).
So he
promised the In/Out referendum we know as BREXIT. Brexit leave voters
were on the whole – poorly educated, older, whiter, and more
northern than their London dwelling richer younger remain votors.
These
voters had usually had their own careers, gained some wealth, but
feared for their children's future. "We did this for you"
was the common cry of the boomers to the millennials.
The
industrial heartland of the UK has been hollowed out massively since
the Thatcher years. The Conservative government of the early '80's
sought an end to union dominance in an attempt to drive
competitiveness by lowering wages. It was somewhat successful. But it
had the side effect of impoverishing a whole region.
Then came
the expansion of the European Union from nations with roughly
equivalent wealth to poorer ex eastern bloc countries like Poland and
Romania. Factory workers in the UK simply could not compete with
lower wage countries. To say nothing of competing with workers in
China or Bangladesh.
The same
issues generally apply to the UK workers as to the US workers. They
remembered a time when life was good. You went to work at the town
factory or mill or whatever, brought up your children in comfort and
they were employed in the same factory. That stability is gone. Now
you have to educated to have a good life in the UK. Many low wage
jobs are also being filled by immigrants from former eastern bloc
nations who are willing to work for less money and drive down wages
and conditions for all.
Another
point of convergence between the two events is border security. Trump has
declared that the Mexican border is permeable. That people can flow
to and from the USA with ease. Nigel Farage, Boris Johnson and the
Brexiteers were against the signature policy of the EU. That of free
movement within member states. The resentment to a perceived flood of
workers from a lower wage nation to a higher one is repeated in both
the USA and the UK.
Racism –
The Elephant in the Room
Of course
there's been another element both to Trump's campaign and to the
Brexit shock. Sheer bloody minded racism. The moment Trump descended
from on high (down those escalators) he declared that Mexicans were
sending criminals and rapists across an open border.
It was
buried a little deeper in the Brexit debate. But not very deep.
Trumping
Reality
All this
might sound like a full throated endorsement of Trump. Believe me it
isn't. Trump is a demagogue, a narcissist, a racist, a sexual
assaulter, a liar, a con man, a poor business man and has an
intellectual curiosity level that makes George W Bush look like a
genius.
Trump lies
at every appearance and whenever called on it he denies he ever said
it. No candidate for high office in the english speaking world has
ever had such a tenuous relationship with reality.
The truth
for Trump is just what he needs it to be at the time.
He is unfit
for office. Any office. Anywhere.
So What
Are You Saying?
On November
8 most likely America will elect Hillary Clinton as their new
President. Hillary seems to represesnt business as usual. But
Business as usual is not an option. The people of the free world have
been trampled on for too long. In a democracy if you ignore the
wishes of the people for too long that democracy itself falls.
“Fantasy.
Lunacy.
All
revolutions are, until they happen, then they are historical
inevitabilities.”
― David
Mitchell, Cloud
Atlas
The western
world is experiencing nasty and unexpected rumblings deep in it's
gut. We are at a time when we can still turn away from the
revolution. But that time will not last forever. Our leaders all need
to focus on the widening gap between rich and poor, not just for the
poor, but for themselves and the rich because when the time comes,
like the Ancien regime of France in 1788, the rich will be the ones
beheaded in the public squares to the cheers of the every man.